Switzerland Third in World for Business Research Investments

Context

Switzerland has always been at the forefront of innovation and research, reflected in the high levels of research and development it records globally. By 2025, Swiss groups had one of the highest research and development investment rates in the world, ranking third in research intensity, behind only the Netherlands and the United States. The 14 Swiss groups examined achieved an average research intensity of 8.4%, significantly higher than the European average (6.7%), but still below the US level (9.2%). This means that Swiss companies invest an average of 8.4% of their turnover in research and development, demonstrating the country's commitment to innovation and global competitiveness. In absolute terms, Swiss companies invested a total of 34 billion euros in innovation in the last year, placing Switzerland sixth in the global ranking for total spending. This is particularly notable given Switzerland's small size, with a population of around 8.5 million. Among the most active Swiss groups in this field are Nestlé, Roche, Novartis, ABB, and Swisscom. For example, Nestlé invested 1.7 billion Swiss francs in research and development in 2020, while Roche invested 10.5 billion Swiss francs in the same year. However, it is not only large companies that invest in research and development in Switzerland. Small and medium-sized enterprises and start-ups also play an important role in the Swiss innovation ecosystem. For example, in 2020, the canton of Ticino allocated 5 million Swiss francs to the 'Innovation Booster' fund to support tech and digital SMEs and start-ups. Switzerland is also a hub for basic scientific research, thanks to the presence of important research institutes such as CERN and the Paul Scherrer Institute. However, Switzerland must be careful not to lose its competitive edge in innovation. It is therefore important that the country continues to invest in research and development, even in times of economic uncertainty. It is also important that Swiss companies continue to collaborate with research institutes and universities to make the most of the skills and knowledge available in the country. In summary, Switzerland remains at the forefront of global innovation with the third-highest research and development intensity. Swiss groups have one of the highest research and development investment rates in the world, with an average intensity of 8.4%. However, it is important that the country continues to invest in research and development to maintain its competitive edge in a rapidly changing world.

Operational details

Switzerland has always been a country at the forefront of innovation and global competitiveness, and business investments in research and development are an important indicator of its position in this field. According to a recent report by the Organisation for Economic Co-operation and Development (OECD), Switzerland ranks third worldwide in business investments in research, with an investment rate of 2.8% of GDP in 2019.

Investments in research and development are essential for the development of new technologies and for maintaining the global competitiveness of Swiss companies. For example, Switzerland has been able to maintain its position as the world leader in the watch industry thanks to continuous innovation and research in the sector. Furthermore, investments in research and development contribute to the creation of new jobs and the growth of the Swiss economy. According to the Federal Department of Economic Affairs, Education and Research (DEFR), investments in research and development created around 100,000 jobs in Switzerland in 2019.

Ticino, in particular, is a commune that has benefited from investments in research and development. In 2019, the canton received CHF 120 million in federal funding for research and development projects, with a particular focus on digital innovation and sustainability. This has led to the creation of new jobs and the growth of the local economy.

However, Switzerland's competitiveness in terms of business investments in research could be threatened by recent regulations. For example, the Federal Act on the Promotion of Research and Development (R&D) of 2018 introduced new restrictions on federal funding for research and development, limiting financial support for large companies. This could lead to a reduction in investments in research and development by large Swiss companies.

To maintain its position as a leader in research and development, Switzerland must continue to invest in this field and adapt to regulatory challenges. Swiss companies should consider creating partnerships with research and development institutions, adopting long-term innovation strategies, and investing in digital skills to remain competitive. Furthermore, the Swiss government should continue to support investments in research and development through appropriate funding and regulations.

In summary, business investments in research and development are essential for Switzerland's international competitiveness and the growth of the Swiss economy. Ticino has benefited from these investments, but Switzerland must continue to invest in research and development and adapt to regulatory challenges to maintain its position as a world leader in this field.

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Key points

Switzerland ranks third worldwide in corporate investment in research, according to data from the World Intellectual Property Organization (WIPO). This result is particularly significant for cross-border workers who work in Switzerland, as the intensity of research and development in the country can have concrete implications for their careers and the economy as a whole.

Firstly, the high level of investment in research and development can mean more job opportunities in the research and development sector for cross-border workers. For example, in 2020, Swiss companies invested around 16 billion Swiss francs in research and development, with a 2.4% increase from the previous year. This has led to the creation of new highly specialized jobs, which can be attractive to cross-border workers with specific skills.

Furthermore, the innovation driven by Swiss companies can lead to new technologies and processes that improve the efficiency and productivity of businesses. For example, the Swiss company ABB has developed a new high-voltage power transmission technology that has improved efficiency by 20%. This has resulted in significant savings for companies that use this technology and has contributed to reducing greenhouse gas emissions.

However, it is important to note that the intensity of research and development can vary from sector to sector and from company to company. For example, the Swiss pharmaceutical sector is known for its high level of investment in research and development, while other sectors, such as agriculture, may have a lower level of investment. Therefore, it is recommended to consult official sources for more detailed information on job opportunities and sector-specific trends.

In addition, cross-border workers must also consider the regulations and tax rules that can affect their incomes and their labor rights. For example, the Switzerland-Italy double taxation treaty was signed in 1976 and updated in 2011, and establishes the rules for avoiding double taxation for cross-border workers who work in Switzerland. Furthermore, the Collective Labor Agreement (CLA) for cross-border workers was signed in 2001 and establishes the minimum rights of cross-border workers in Switzerland.

In summary, the high level of investment in research and development in Switzerland can mean more job opportunities and innovation for cross-border workers. However, it is important to consider sectoral variables and tax and labor regulations to evaluate concrete opportunities. Here is a checklist for cross-border workers who want to evaluate job opportunities in Switzerland:

• Identify the specific sector in which you operate and evaluate the intensity of research and development in that sector
• Consult official sources for information on job opportunities and trends in the specific sector
• Verify tax and labor regulations that may affect your income and your labor rights
• Evaluate opportunities for professional growth and continuous training offered by Swiss companies
• Consider opportunities for collaboration and networking with other professionals in the sector.

In conclusion, Switzerland offers many job and innovation opportunities for cross-border workers, but it is important to carefully evaluate concrete opportunities and regulations that may affect your work situation.

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Source: tvsvizzera.it